INVESTOR INFORMATION 2018 Consolidated Financial Highlights

Tokyo Broadcasting System Holdings, Inc.

Net Sales Operating Income (Millions of Yen) (Millions of Yen)

361,954 354,338 347,817 348,539 355,363 19,878 18,800 17,179 15,696 15,728

14/315/3 16/3 17/3 18/3 14/3 15/3 16/3 17/3 18/3

Ordinary Income Pro t Attributable to Owners of Parent (Millions of Yen) (Millions of Yen) 26,207 26,923 17,182 22,678 16,136 14,497 18,096 18,915 12,811 9,644

14/3 15/3 16/3 17/3 18/3 14/3 15/3 16/3 17/3 18/3

Total Assets Total Net Assets 823,693 (Millions of Yen) (Millions of Yen) 600,950 707,063 653,732 649,970 517,430 579,039 456,118 458,208 385,971

14/3 15/3 16/3 17/3 18/3 14/3 15/3 16/3 17/3 18/3

Contents 2 To Our Stakeholders 15 Major Indices 3 At a Glance 17 Segment Information 4 Organization 19 TBS Television 5 Corporate Data 22 Financial Data of Major Group Companies 6 Business Report 24 TBS Networks 11 Consolidated Financial Statements

Financial Figures The nancial gures used in this report are those used in the Japanese ”Tanshin,” which has been created in accordance with the provisions set forth in the Japanese Financial Instruments and Exchange Act. Thus, all gures have been rounded down to the nearest million yen. Forward-Looking Statements This report contains forward-looking statements based on management’s assumptions and beliefs in light of the information currently available. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those discussed in this report. Such risks include, but are not limited to, market trends, economic conditions and changes in industry regulations.

Tokyo Broadcasting System Holdings, Inc. 1 INVESTOR INFORMATION 2018 To Our Stakeholders

In June 2018, I Was Appointed President

I am Takashi Sasaki, recently appointed as President and large number of market players from inside and outside Representative Director of Tokyo Broadcasting System Japan, resulting in intense competition. We see this time Holdings, Inc., and Tokyo Broadcasting System of change positively and as an opportunity for evolution. Television, Inc. (TBS TV). Accordingly, in April 2018, we launched the Paravi paid Technological innovation and developing lifestyles are video streaming and related services. We intend to bringing dramatic change to the environment in which grasp this opportunity for new growth by drawing on the the broadcasting industry operates. Amid the change, strengths in content creation that we have accumulated however, we remain committed to doing all we can to over long years to further expand our horizons as an evolve our Group as a media industry player enjoying all-round media group. ever greater popularity and trust from the public. Guided by the commitment “From TBS,” we at the TBS For the fiscal year ended March 31, 2018, our Group will continue to take on new challenges to average audience ratings in the golden time slot placed brighten the lives of our audience with a range of content us second among commercial TV broadcasting networks in the years to come. We ask for the continued support for the first time in 11 years. We feel that this reflects the and understanding of our stakeholders in our endeavors. gradually emerging success of the Group-wide initiatives to create content that engages people’s emotions, offer June 2018 entertainment that brings a smile, and deliver true stories from around the world. To capitalize on this upward trend, we are determined to redouble our efforts to create content that meets the diverse needs of our Takashi Sasaki audience. President & Representative Director With the increasing popularity of online video Tokyo Broadcasting System Holdings, Inc. watching, the video streaming market has attracted a Tokyo Broadcasting System Television, Inc.

Tokyo Broadcasting System Holdings, Inc. 2 INVESTOR INFORMATION 2018 At a Glance

Our Business

The Group covers a wide range of businesses essentially including broadcasting. We aim to become the best media group that provides the most powerful contents and software in the areas of information, entertainment, lifestyle and culture.

Planning & Terrestrial TV Terrestrial radio Satellite Net & mobile production of broadcasting broadcasting broadcasting contents audio & visual contents

Manufacture & Miscellaneous sale of cosmetics retailing

Real estate leasing

Business Activities (Year ended March 31, 2018)

4.4% Broadcasting Business ¥217.6 billion

Multi-Visual Ventures and Cultural Events Business 35.5% 60.1% ¥128.4 billion

Real Estate Business ¥15.8 billion

Tokyo Broadcasting System Holdings, Inc. 3 INVESTOR INFORMATION 2018 Organization

As of April 1, 2018 Tokyo Broadcasting System Holdings, Inc.

Broadcasting Business Multi-Visual Ventures and Cultural Events Business Tokyo Broadcasting System Television, Inc. NICHION, INC.

TBS Radio Inc. TBS Ser vice, Inc.

TBS Vision, Inc. OXYBOT, Inc.

FF TOHO, Inc. TC Entertainment Incorporated

TBS-TEX, Inc. Grand Marche, Inc.

DREAMAX TELEVISION, INC. TBS TriMedia, Inc.

AKASAKA GRAPHICS ART, INC. StylingLife Holdings Inc. (with two other group companies)

Art Communication System, Inc. C-TBS, Incorporated

TBS ProNex Inc. Golf Network Plus Inc.

Japan Artvideo Ser vice Collaborative, Inc. SEVEN・ARCS Co., Ltd. (with two other group companies)

Vucast, Inc.

TBS MEDIA RESEARCH INSTITUTE Inc. Equity-Method Af liates

TBS International, Inc. WOWOW Inc. BS-TBS, INC. Premium Platform Japan, Inc. Totsu Inc. Place Holder, Inc. TLC Co., Ltd.

Vecte, Inc.

Real Estate Business

Midoriyama Studio City, Inc.

TBS Kikaku Co., Ltd.

Akasaka Heat Supply Co., Ltd.

TBS Sunwork, Inc.

Tokyo Broadcasting System Holdings, Inc. 4 INVESTOR INFORMATION 2018 Corporate Data

As of April 1, 2018

Date of Establishment May 10, 1951 (Registered on May 17) Head Office 5-3-6 Akasaka, Minato-ku, Tokyo 107-8006, Japan www.tbsholdings.co.jp Stock Code: 9401, TSE First Section Paid-in Capital ¥54,986,892,896 Number of Employees Tokyo Broadcasting System Holdings, Inc. 241 Tokyo Broadcasting System Television, Inc. 1,101 TBS Radio Inc. 58

1 3 4 5

2 6

1 Newsroom at TBS Television 3 Akasaka Biz Tower 5 TBS studio for news programs 2 Sub-control room at TBS Television 4 TBS Holdings Head Office 6 TBS studio for variety shows

Major Shareholders and Number of Shares Held (Top 10) (as of March 31, 2018) Number of shares held Percentage held Name of shareholder (shares) (%) The Master Trust Bank of Japan, Ltd. 9,353,500 5.35 (Trust Account) The Master Trust Bank of Japan, Ltd. 9,310,500 5.32 (Pension Account-Pension Trust Account held for DENTSU INC.) MBS MEDIA HOLDINGS, INC. 8,848,100 5.06

MITSUI & CO., LTD. 5,746,000 3.28

Sumitomo Mitsui Banking Corporation 5,745,267 3.28

Mitsui Fudosan Co., Ltd. 5,713,728 3.27

NTT DOCOMO, INC. 5,713,000 3.26

Panasonic Corporation 5,643,180 3.23

Nippon Life Insurance Company 5,006,235 2.86

UBS AG LONDON A/C IPB SEGREGATED CLIENT ACCOUNT 4,409,400 2.52

Tokyo Broadcasting System Holdings, Inc. 5 INVESTOR INFORMATION 2018 Business Report

From April 1, 2017 to March 31, 2018 The Current Position of Tokyo Broadcasting System Holdings, Inc. and its Subsidiaries

1 Business Activities and Results TBS TV, the core of the Broadcasting Business, posted time revenue of ¥86,388 million, up 1.2% year on year, and Japan’s economy continues on a path of modest recovery, spot revenue of ¥83,702 million, down 2.9% year on year, with improvements seen in the employment and income for the fiscal year under review. Time one-off sales fell slightly environment. Meanwhile, the future outlook remains unclear short of the previous year despite sales of various one-off due to uncertainties in overseas economies, such as political programs, such as the IAAF World Championships London risks in the West and geopolitical risks in Asia. 2017, SMBC Nippon Series 2017, PyeongChang 2018 Against this backdrop, consolidated net sales of the Group Winter Olympic Games and 2018 Space Travel with Akira in the fiscal year ended March 31, 2018 increased by 1.9% Ikegami. On the other hand, time regular sales increased on from the previous fiscal year to ¥361,954 million, operating the back of strong audience ratings, resulting in an increase income decreased by 5.4% to ¥18,800 million, ordinary in total revenue. Spot sales were lower than the previous income increased by 2.7% to ¥26,923 million, and profit year due to a 2.0% decline in the volume of advertisements attributable to owners of parent increased by 6.5% to in the Kanto Region. ¥17,182 million. BS-TBS, INC. posted net sales of ¥16,784 million, down 1.4% year on year, and operating income of ¥2,393 million, down 6.4% year on year, for the fiscal year under Broadcasting review. Although spot and shopping sales were strong and Consolidated net sales from the Broadcasting Business time one-off sales remained at the same level as the previous segment decreased by 0.7% from the previous fiscal year to year, sales declined as time regular sales struggled. ¥217,632 million, while operating income decreased by Operating income declined due to an increase in production 44.7% to ¥3,300 million. and other expenses associated with enhancement of programs. TBS Radio Inc. continued to rank No. 1 in radio listener ratings research conducted by Video Research Ltd. in the Tokyo metropolitan area in February. Since the research undertaken for August 2001, the company has retained top position for 100 consecutive terms covering 16 years and

IAAF World Championships London 2017 IAAF World Championships London 2017 Akira Kishimoto/PHOTO KISHIMOTO Takamitsu Mifune/PHOTO KISHIMOTO

Tokyo Broadcasting System Holdings, Inc. 6 INVESTOR INFORMATION 2018 Business Report

From April 1, 2017 to March 31, 2018

eight months. Despite a 3.2% decline in net sales for the Crimes That Bind (starring Hiroshi Abe, etc. and directed by fiscal year under review from the previous year, the Katsuo Fukuzawa) released in January, with box office Company posted a significant increase (45.6%) in operating revenues of more than ¥2.5 billion, ¥2.7 billion and ¥1.5 income as a result of thorough efforts to control costs, among billion, respectively. Akasaka Sacas attracted many people other initiatives. throughout the year, organizing new events in addition to annual events, such as Mama Sacas in the spring, Deliciacas in the summer and White Sacas in the winter. Multi Visual Ventures and Cultural Events Regarding the media business, businesses targeting Net sales from the Multi-Visual Ventures and Cultural Events overseas reported strong sales growth, particularly sales in Business segment increased by 6.2% from the previous fiscal the SASUKE format. In the CS business, sales declined due to year to ¥128,453 million, while operating income increased a decrease in the number of subscribers on each platform by 22.4% to ¥7,551 million. despite measures taken for increasing the number of viewers, Among concerts and stage performances, Gekidan☆ such as enhancing original content. In addition, the licensing Shinkansen Seven Souls in the Skull Castle presented at IHI business posted a sales increase, boosted by hit products Stage Around Tokyo, Asia’s first 360-degree revolving such as TV shopping which performed well. theater opened in Toyosu, Tokyo was a huge success with The StylingLife Group increased both sales and operating the tickets selling out on successive days for the last income, led by the cosmetics business that remained strong performance SHURA-TENMA, following the first Season especially for hit products. Its core retailing business, Plaza HANA, the second Season TORI, the third Season KAZE and style Company, recorded an increase in sales, which were the fourth Season TSUKI. boosted by a strong cosmetics performance, and secured a Orebushi, Billy Elliot, as well as Tetsuya Kumakawa rise in income. K-Ballet Company’s Nutcracker presented at TBS Akasaka ACT Theater were well received. Regarding events, Musée du Petit Prince de Saint-Exupéry à Hakone received a record- high number of more than 220,000 annual visitors. In film business, the Company had a series of blockbuster hits, such as Mumon: The Land of Stealth (starring Satoshi Ohno, etc. and directed by Yoshihiro Nakamura) released in July, The 8-Year Engagement (starring Takeru Sato, etc. and directed by Takahisa Zeze) released in December, and The

Tokyo Broadcasting System Holdings, Inc. 7 INVESTOR INFORMATION 2018 Business Report

From April 1, 2017 to March 31, 2018

Real Estate Business 3 Capital Procurement Net sales from the Real Estate Business segment increased by Total interest-bearing debt of the Group at the end of the 4.4% from the previous fiscal year to ¥15,868 million, and fiscal year under review was ¥21,200 million in long-term operating income increased by 2.8% to ¥7,954 million. loans payable (including the current portion). (Excluding Akasaka Biz Tower maintained sound business operations lease obligations.) with occupancy of both offices and commercial facilities To ensure flexible access to operating capital, as of the remaining high. Regarding Akasaka Sacas, we aim to end of the fiscal year under review, StylingLife Holdings Inc., cement its status as a mecca for creative broadcasting culture a consolidated subsidiary of the Company, had established by continuing to hold events that bring the TBS Group and the commitment lines agreements, totaling ¥2.5 billion with our programs closer to customers and viewers. multiple financial institutions (the balance of the funds drawn is nil, and the available balance is ¥2.5 billion). Besides the above, with the aim of streamlining of funds, 2 Capital Investment some of the account receivables are in the process of liquidation. Total capital investment in the fiscal year under review was ¥8.9 billion. Regarding the core system of TBS TV, because 15 years have passed since the launch of digital terrestrial broadcasting and a deterioration is noticeable, the Company fully updated the television master control equipment and business broadcasting system. The latest technologies were introduced, and a system was designed to ensure safe and secure broadcasting services. In news reporting, the Company updated broadcasting equipment in the prime minister’s official residence because it had deteriorated. The Akasaka Residence equipment in the prime minister’s official residence is used for daily important news report broadcasts such as broadcasting of the Cabinet formation on a call-in basis, Chief Cabinet Secretary briefings and reporter briefings, etc. Through such update, stable news report broadcasts were made possible. At digital terrestrial relay stations around Kanto Area, several facilities prepared in time for the launch of digital broadcasting are aging. We are continuing our efforts to maintain and upgrade the facilities of digital relay stations in cooperation with companies in the Kanto region to ensure and support a region-wide environment for receiving television broadcasts.

Tokyo Broadcasting System Holdings, Inc. 8 INVESTOR INFORMATION 2018 Business Report

From April 1, 2017 to March 31, 2018

4 Priorities Major initiatives under Group Medium-term Management Plan 2020 Changes in the environment surrounding the broadcasting media further accelerated in FY2017. Amid the slowing 1. Increase of the competitiveness of TBS TV Creation of the domestic market due to an aging population with fewer strongest and best content children, a so-cold “viewer shift,” a trend in which people In FY2017 rankings in terms of household audience ratings, enjoy video content easily with smartphones and tablets, is TBS TV came in third in All Day, Golden Time (second accelerating as functions of the devices have become more among commercial TV stations) and Prime Time categories, sophisticated. Furthermore, the needs of advertisers are moving up the ratings in all time categories. In particular, we becoming diverse with these changes in lifestyle. achieved the rankings of third in the All Day category and Amid these circumstances, the Group has been pushing second among commercial TV stations in the Golden Time forward with the Group Medium-term Management Plan category for the first time in 11 years. Our dramas and 2018 since FY2016 and after consolidated operating variety shows proved popular with many viewers. Without income and consolidated ratio of operating income to net becoming complacent, we will further strengthen our sales plan achieved our goal for FY2018, the final year of production capabilities to keep creating content that fits the the plan, two years ahead of the schedule in the first year. times from new perspectives at all times. Therefore, we developed Group Medium-term Management Specifically, we will build a system for providing accurate Plan 2020 in February 2018 and decided to make group- information earlier in a manner that is easier to understand wide efforts to achieve the new goals. The Plan aims to than any other medium with the aim of becoming news develop into a media group that is always loved and trusted media proud of overwhelming reputation. In addition, we by people regardless of changes in its operating will produce dramas, variety shows and documentaries that environment, eying the era of integration between convey joy and excitement more than ever before by further broadcasting and telecommunications services and the developing the content production capabilities unique to TBS post-Olympic and Paralympic Games Tokyo 2020 period. that we have built up over many years. Based on these efforts, we set the FY2020 goal of an audience rantings of second among all TV stations or higher. While our ultimate goal is to become number one, we will first establish a foothold over the three-year period before trying to get the top position in the industry.

2. Diversification and challenge to total media that creates the synergy for TBS Having terrestrial broadcasting as its core, the Group operates wide-ranging media businesses: broadcasting satellite (BS), communications satellite (CS), radio broadcasting, distribution, and multi visual ventures & culture events. In the distribution business, Paravi, a fee-charging video distribution service of Premium Platform Japan, Inc. (PPJ) launched in July 2017, started on April 1, 2018, amid rapidly growing video viewing using the Internet. Paravi

Tokyo Broadcasting System Holdings, Inc. 9 INVESTOR INFORMATION 2018 Business Report

From April 1, 2017 to March 31, 2018

features wide-ranging content that other distribution services As the result of these efforts under the Medium-term do not have, with investments by Nikkei Inc., TV TOKYO Management Plan, we set consolidated net sales of ¥400 Holdings Corporation, WOWOW Inc., Dentsu Inc., and billion, consolidated operating income of ¥25 billion and the Hakuhodo DY Media Partners Incorporated, in addition to ratio of operating income to net sales of 6.3% on a the Company. While many companies inside and outside consolidated basis as goals to achieve in FY2020. Japan entered the video distribution business, we will make We will continue striving to provide high-quality content all-out efforts to grow the all-Japan platform led by us, content and aim to achieve further growth and corporate value producers. enhancement to meet the expectations of our shareholders. In the multi visual ventures and culture events business, the Company made an animation production company into its wholly owned subsidiary, and took a stake in a developer of digital intellectual training content for children. Seven Souls in the Skull Castle presented at IHI Stage Around Tokyo, a 360-degree theater opened in Toyosu, Tokyo in 2017 was a huge success with the seats filled every day, acclaimed by the theatrical community around the world. Furthermore, we set up a ¥50 billion strategic investment program over the three-year period leading up to FY2020 to promote new businesses as well as mergers and acquisitions without sticking to existing ideas. Going forward, we will further expand our reach as a comprehensive media group and continue to evolve.

3. Performance of the social responsibility that the TBS Group should fulfill The Group, which has under its umbrella a broadcaster that is authorized to use the limited rare radio waves, needs to fulfill a higher level of social responsibility. In addition to communicating fair and accurate information, the Group will serve as a lifeline function for society in case of emergency. In January 2018, TBS TV received a recommendation for correction from a Labor Standard Inspection Office concerning overtime work of some employees. Taking the recommendation seriously, TBS TV is working to ensure compliance with laws and regulations and address the issue of long working hours. As a result, it is making progress in reducing working hours on a company-wide basis. We will continue to drive the work style reform going forward as a management top priority.

Tokyo Broadcasting System Holdings, Inc. 10 INVESTOR INFORMATION 2018 Consolidated Financial Statements

Consolidated Balance Sheets (Unaudited) Millions of yen As of March 31, 2018 and 2017 2017 2018 Assets Current assets Cash and deposits ¥ 69,731 ¥ 81,850 Notes and accounts receivable—trade 42,460 42,516 Securities 449 300 Merchandise and finished goods 7,472 7,769 Program rights and work in process 6,378 7,072 Raw materials and supplies 520 673 Prepaid expenses 10,206 10,971 Deferred tax assets 3,326 3,827 Other 5,086 4,662 Allowance for doubtful accounts (153) (157) Total current assets 145,479 159,488 Noncurrent assets Property, plant and equipment Buildings and structures 200,685 201,667 Accumulated depreciation (106,060) (110,383) Buildings and structures, net 94,624 91,283 Machinery, equipment and vehicles 90,149 85,517 Accumulated depreciation (79,502) (75,623) Machinery, equipment and vehicles, net 10,647 9,894 Tools, furniture and fixtures 30,972 30,998 Accumulated depreciation (28,357) (28,464) Tools, furniture and fixtures, net 2,615 2,534 Land 84,003 84,001 Lease assets 4,348 4,237 Accumulated depreciation (2,233) (2,523) Lease assets, net 2,115 1,713 Construction in progress 3,786 1,201 Total property, plant and equipment 197,792 190,628 Intangible assets Software 3,929 5,734 Goodwill 18,595 16,798 Lease assets 68 37 Other 1,253 1,273 Total intangible assets 23,846 23,844 Investments and other assets Investment securities 326,689 436,399 Long-term loans receivable 216 240 Deferred tax assets 1,161 1,090 Long-term prepaid expenses 241 173 Other 11,839 12,014 Allowance for doubtful accounts (203) (184) Total investments and other assets 339,944 449,732 Total noncurrent assets 561,583 664,204 Total assets ¥ 707,063 ¥ 823,693

Tokyo Broadcasting System Holdings, Inc. 11 INVESTOR INFORMATION 2018 Consolidated Financial Statements

Consolidated Balance Sheets (Unaudited) Millions of yen As of March 31, 2018 and 2017 2017 2018 Liabilities Current liabilities Notes and accounts payable—trade ¥ 36,130 ¥ 39,446 Short-term loans payable 769 — Current portion of long-term loans payable 5,400 18,200 Accounts payable—other 12,077 12,773 Income taxes payable 6,083 5,891 Accrued consumption taxes 1,513 1,377 Accrued expenses 1,620 2,111 Provision for bonuses 4,684 4,964 Provision for directors’ bonuses 107 139 Provision for removal of noncurrent assets 432 73 Other provision 287 401 Other 8,122 8,004 Total current liabilities 77,231 93,382 Noncurrent liabilities Long-term loans payable 17,000 3,000 Provision for environmental measures 121 121 Net defined benefit liability 16,206 15,943 Lease obligations 1,001 679 Deferred tax liabilities 63,201 94,345 Other 14,871 15,269 Total noncurrent liabilities 112,402 129,359 Total liabilities 189,633 222,742 Net assets Shareholders’ equity Capital stock 54,986 54,986 Capital surplus 50,489 46,760 Retained earnings 267,127 262,138 Treasury stock (20,543) (54) Total shareholders’ equity 352,059 363,830 Accumulated other comprehensive income Valuation difference on available-for-sale securities 150,247 221,405 Deferred gains or losses on hedges 174 (117) Foreign currency translation adjustment 5 (34) Remeasurements of defined benefit plans (42) (29) Total accumulated other comprehensive income 150,385 221,224 Non-controlling interests 14,985 15,895 Total net assets 517,430 600,950 Total liabilities and net assets ¥ 707,063 ¥ 823,693

Tokyo Broadcasting System Holdings, Inc. 12 INVESTOR INFORMATION 2018 Consolidated Financial Statements

Consolidated Statements of Income (Unaudited) Millions of yen As of March 31, 2018 and 2017 2017 2018 Net sales ¥ 355,363 ¥ 361,954

Cost of sales 242,067 248,204 Gross profit 113,296 113,750

Selling, general and administrative expenses 93,417 94,949 Operating income 19,878 18,800

Non-operating income

Interest income 25 26

Dividends income 5,087 8,083

Equity in earnings of affiliates 986 391

Other 1,141 394 Total non-operating income 7,241 8,896

Non-operating expenses

Interest expenses 468 378

Loss on retirement of noncurrent assets 77 166

Other 366 228 Total non-operating expenses 912 772

Ordinary income 26,207 26,923

Extraordinary income

Gain on sales of investment securities 212 988

Total extraordinary income 212 988

Extraordinary loss

Impairment loss 79 149

Provision of allowance for removal 432 139

Loss on business withdrawal — 97

Early extra retirement payments — 52

Loss on retirement of noncurrent assets 101 33

Loss on valuation of investment securities 129 4

Loss on sales of shares of subsidiaries and associates 215 — Total extraordinary losses 958 476

Profit before income taxes 25,461 27,435

Income taxes—current 8,537 9,923 Income taxes—deferred 39 (549)

Total income taxes 8,576 9,374

Profit 16,884 18,061

Profit attributable to non-controlling interests 747 878

Profit attributable to owners of parent ¥ 16,136 ¥ 17,182

Tokyo Broadcasting System Holdings, Inc. 13 INVESTOR INFORMATION 2018 Consolidated Financial Statements

Consolidated Statements of Cash Flows (Unaudited) Millions of yen As of March 31, 2018 and 2017 2017 2018 Cash flows from operating activities Income before income taxes ¥ 25,461 ¥ 27,435 Depreciation and amortization 13,614 14,866 Amortization of long-term prepaid expenses 108 77 Amortization of goodwill 1,796 1,796 Gain on valuation of investment securities 129 4 Gain on sales of investment securities (212) (988) Increase (decrease) in allowance for noncurrent asset retirement expense 432 (359) Increase (decrease) in provision for bonuses 3,711 280 Increase (decrease) in net defined benefit liability 268 (170) Loss on retirement of noncurrent assets 178 199 Increase (decrease) in allowance for doubtful accounts (45) (15) Interest and dividends income (5,113) (8,110) Interest expenses 468 378 Equity in (earnings) losses of affiliates (986) (391) Decrease (increase) in notes and accounts receivable—trade (3,593) (56) Decrease (increase) in inventories (391) (1,144) Decrease (increase) in prepaid expenses 752 (713) Increase (decrease) in notes and accounts payable—trade 2,087 3,315 Other, net (1,694) (106) Subtotal 36,974 36,297 Interest and dividends income received 5,408 8,446 Interest expenses paid (582) (378) Income taxes refund 2,532 1,272 Income taxes paid (7,847) (10,100) Net cash provided by operating activities 36,485 35,536 Cash flows from investing activities Purchase of property, plant and equipment (9,459) (6,079) Purchase of intangible assets (1,236) (3,703) Purchase of investment securities (240) (3,503) Proceeds from sales of investment securities 266 2,110 Purchase of stocks of subsidiaries and affiliates (544) (5,232) Other, net 1,135 2,380 Net cash used in investing activities (10,078) (14,028) Cash flows from financing activities Increase in short-term loans payable 769 — Decrease in short-term loans payable — (769) Increase in long-term loans payable — 4,800 Repayment of long-term loans payable (1,200) (6,000) Redemption of bonds (30,000) — Proceeds from disposal of treasury shares 328 397 Cash dividends paid (4,707) (5,587) Cash dividends paid to non-controlling interests (173) (135) Repayments to non-controlling shareholders (1,350) — Other, net (384) (435) Net cash used in financing activities (36,718) (7,730) Effect of exchange rate change on cash and cash equivalents (2) (40) Net increase (decrease) in cash and cash equivalents (10,314) (13,738) Cash and cash equivalents at beginning of period 74,734 67,391 Increase (decrease) in cash and cash equivalents resulting from change of scope of consolidation 2,971 — Cash and cash equivalents at end of period ¥ 67,391 ¥ 81,129

Tokyo Broadcasting System Holdings, Inc. 14 INVESTOR INFORMATION 2018 Major Indices

Earnings per Share Return on Equity (Yen) (%)

98.38 92.46 83.12 79.12 3.4 3.3 3.2 3.2 61.22 2.8

14/3 15/3 16/3 17/3 18/3 14/3 15/3 16/3 17/3 18/3

Ratio of Ordinary Income to Total Assets Ratio of Operating Income to Net Sales (%) (%) 5.6 5.2 4.9 4.5 3.9 4.4 3.5 3.5 3.2 3.1

14/3 15/3 16/3 17/3 18/3 14/3 15/3 16/3 17/3 18/3

Equity Ratio Net Assets per Share (%) (Yen) 3,349.52 71.1 71.0 66.7 68.3 2,878.29 63.3 2,689.56 2,545.60 2,263.65

14/3 15/3 16/3 17/3 18/3 14/3 15/3 16/3 17/3 18/3

Tokyo Broadcasting System Holdings, Inc. 15 INVESTOR INFORMATION 2018 Major Indices

Number of Shares Issued at the End of the Term Amount of Treasury Shares at the End of the Term (Including Treasury Shares) (Shares) (Shares)

190,434,968 190,434,968 190,434,968 190,434,968 174,709,837

28,590,009 28,404,517

15,981,914 15,871,409

41,774

14/3 15/3 16/3 17/3 18/3 14/3 15/3 16/3 17/3 18/3

Cash Flows from Operating Activities Cash Flows from Investing Activities (Millions of yen) (Millions of yen)

36,485 35,536 32,337 27,851 –2,326 23,038

–8,956 –10,078 –11,326

–14,028

14/3 15/3 16/3 17/3 18/3 14/3 15/3 16/3 17/3 18/3

Cash Flows from Financing Activities Cash and Cash Equivalents, at End of Period (Millions of yen) (Millions of yen)

81,129 74,374 67,391

56,728 –5,326 56,312 –7,730

–23,567 –25,242

–36,718

14/3 15/3 16/3 17/3 18/3 14/3 15/3 16/3 17/3 18/3

Tokyo Broadcasting System Holdings, Inc. 16 INVESTOR INFORMATION 2018 Segment Information

Consolidated Results by Segment (Millions of yen) FY2018 External Operating y/y change y/y change sales income

Broadcasting Business ¥217,632 –1,542 ¥ 3,300 –2,672

Multi-Visual Ventures and Cultural Events Business 128,453 +7,467 7,551 +1,382

Real Estate Business 15,868 +666 7,954 +218

Consolidated Business ¥361,954 +6,590 ¥18,800 –1,078

Capital Expenditures and Depreciation (Millions of yen)

Consolidated FY2018

Capital expenditures ¥ 8,948

Depreciation 13,693

TBS Holdings FY2018

Capital expenditures ¥ 531

Depreciation 2,663

TBS Television FY2018

Capital expenditures ¥ 6,696

Depreciation 8,574

Tokyo Broadcasting System Holdings, Inc. 17 INVESTOR INFORMATION 2018 Segment Information

FY2019 Consolidated and TBS Television Business Results Forecasts

(Millions of yen)

2019 Consolidated FY2019

Net sales ¥367,000

Operating income 18,000

Ordinary income 27,400

Profit attributable to owners of parent 17,500

Business Results Forecast by Segment (Millions of yen)

Consolidated FY2019 Consolidated net sales ¥367,000 Broadcasting Business 221,000 Multi-Visual Ventures and Cultural Events Business 130,300 Real Estate Business 15,700 Consolidated operating income 18,000 Broadcasting Business 3,000 Multi-Visual Ventures and Cultural Events Business 7,500 Real Estate Business 7,500

(Millions of yen)

2019 TBS Television FY2019

Net sales ¥220,000

Operating income 6,500

Ordinary income 9,000

Net income 6,300

Time/Spot, Program Cost Forecasts

Full year Time +0.8% Spot +4.9% Program cost ¥102,400 million

Note: The estimated figures above, which were announced on May 10, 2018, are subject to revision. For the most up-to-date estimated figures, please see the Company’s web site.

Tokyo Broadcasting System Holdings, Inc. 18 INVESTOR INFORMATION 2018 TBS Television 1

Breakdown of TBS Television Income (Millions of yen) FY2018 y/y change Television ¥184,370 –283

Time advertising 86,388 +999

Spot advertising 83,702 –2,538

Program sales in Japan 10,331 +1,398

Others 3,948 –143

Operations 29,727 +729

Real estate 3,054 –11

Total income ¥217,152 +435

Year-on-Year Changes in Time/Spot Earnings (%) 150

Time Spot

120 117.3 112.4

103.3 103.0 101.8 100.0 100.5 99.8 100.3 101.3 101.1 110.2 96.3 103.0 99.3 99.2 90 97.3 97.3 96.4 92.3 94.4 86.7 85.4 85.7

2017 2018 Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar.

Q1 Q2 Q3 Q4 Full year

● Time 98.6 105.8 101.8 98.5 101.2

● Spot 100.2 100.6 97.6 90.2 97.1

TBS share among five key broadcasters 19.2 19.0 18.8 17.7 18.7

HIRUOBI! Information 7 Days Newscaster SUNDAY JAPON

Tokyo Broadcasting System Holdings, Inc. 19 INVESTOR INFORMATION 2018 TBS Television 2

Spot Advertising Sales Ranks by Business Category (%) FY2018 Growth rate Share 1 Information, telecommunications and broadcasting –3.6 13.5 2 Foods –7.8 10.4 3 Alcoholic and other beverages –2.5 10.2 4 Pharmaceuticals –9.8 8.8 5 Cosmetics and toiletry –1.0 8.4 6 Automobiles and transportation equipment +3.7 6.8 7 Transportation and leisure +31.3 6.5 8 Financial services –26.3 4.8 9 Real estate and construction +30.6 4.7 10 Eating out and related services –4.4 4.5

(Ranked in order of sales proceeds)

TBS Television Business Segment Income (Millions of yen) Segment Full year y/y change Remarks

The Little Prince Museum in Hakone and K-Ballet Company showed good results, but revenue Cultural business (events) ¥ 2,496 –943 declined significantly due to the smaller number and size of events compared to the previous year.

Revenue increased significantly with strong performances of events, in addition to the strong Operations Show business 7,627 +3,586 division success throughout the year of Seven Souls in the Skull Castle of IHI Stage of Around Tokyo. Movies Revenue increased due to the hits of the 8-Year Engagement and The Crimes That Bind in the Movies 2,071 +522 and fourth quarter, as well as the hit of The Land of Stealth throughout the year. animation business Animation 878 –99 Revenue declined due to the absence of a blockbuster hit throughout the year.

Revenue from DVDs declined significantly without a big hit, in addition to the difficult market Multi-visual business 2,396 –2,549 conditions. Revenue from on-demand declined mainly due to the change in a contract with a customer.

Revenue rose significantly, primarily due to continued strong sales in Asian markets, the Overseas business 3,345 +453 expansion of SASUKE overseas and strong sales of the rights to remake dramas. Content Revenue declined, mainly due to the impact of a decline in the number of subscribers to SKY business Pay-TV business 8,802 –242 PerfecTV! and the loss of the broadcast rights to football games. division Revenue increased, reflecting growth in sales of goods related to Seven Souls in the Skull Licensing business 1,048 +113 Castle, 99.9, RIKUOH and TOMICA Hyper Rescue Police DRIVE HEAD, in addition to the strong performance of special online shopping programs.

Revenue declined mainly due to the termination of content production for carriers, but profit Digital/new business 1,061 –111 increased.

Total ¥29,727 +729

The World Unknown to Matsuko Bakuhou! THE Friday Monitoring

Tokyo Broadcasting System Holdings, Inc. 20 INVESTOR INFORMATION 2018 TBS Television 3

FY2018 Viewer Ratings

All day Golden time* Prime time** TBS 6.3 (3rd) 9.9 (3rd) 9.8 (3rd)

NTV 8.1 (1st) 12.4 (1st) 12.0 (1st)

TV Asahi 7.4 (2nd) 9.9 (3rd) 10.0 (2nd)

TV Tokyo 2.8 (6th) 6.6 (6th) 6.2 (6th)

Fuji TV 5.7 (5th) 7.8 (5th) 7.7 (5th)

NHK 6.3 (3rd) 10.4 (2nd) 9.1 (4th) (%)

HUT 40.8 60.7 58.2

Ratings for April 3, 2017 to April 1, 2018, on a weekly basis (According to research by Video Research Ltd. in the Kanto region) * 19:00–22:00 ** 19:00–23:00

TV Program Costs (Production Expenses) (Millions of yen) FY2018 FY2017 y/y change Q1 ¥23,770 ¥23,722 +49

Q2 25,152 24,932 +221

Q3 24,797 23,805 +992

Q4 25,997 25,718 +279

Direct expenses 20,575 20,311 +264

Indirect expenses 5,422 5,407 +15

Fiscal year cumulative ¥99,717 ¥98,176 +1,541

FY2019 forecast ¥102,400

Major expenses included in TV program costs: Direct expenses: Program production expenses, fees for broadcasting rights, fine arts production expenses, technical production expenses Indirect expenses: Absorbed costs including depreciation and personnel cost for employees

RIKUOH Unnatural Dr.STORKS

Tokyo Broadcasting System Holdings, Inc. 21 INVESTOR INFORMATION 2018 Financial Data of Major Group Companies

TBS Radio Inc. (Millions of yen) FY2018 Amount y/y change

Net sales ¥10,478 –346

Operating income 520 +162

Ordinary income 528 +163

Net income 342 +103

Recorded the highest ratings for 102 consecutive periods from August 2001 to June 2018.

BS-TBS, INC. (Millions of yen) FY2018 Amount y/y change

Net sales ¥16,784 –246

Operating income 2,393 –164

Ordinary income 2,440 –155

Net income 1,674 –107

Grand Marche, Inc. (Millions of yen) FY2018 Amount y/y change

Net sales ¥14,056 +1,473

Operating income 356 +43

Ordinary income 345 +19

Net income 237 +15

Tokyo Broadcasting System Holdings, Inc. 22 INVESTOR INFORMATION 2018 Financial Data of Major Group Companies

StylingLife Holdings Inc. (Consolidated) (Millions of yen) FY2018 Amount y/y change

Net sales ¥70,054 +4,389

Operating income 3,148 +576

Ordinary income 3,112 +677

Tokyo Broadcasting System Holdings, Inc. 23 INVESTOR INFORMATION 2018 TBS Networks

JNN ( Japan News Network) JRN ( Japan Radio Network)

TBS Television and TBS Radio harness two of the most extensive commercial broadcasting networks in Japan, in which 28 TV stations af liated with the Japan News Network (JNN) and 34 radio stations af liated with the Japan HBC Radio Network (JRN) nationwide guarantee thorough and quality news gathering. Our news network delivers accurate information in a split second, in alliance ATV with overseas bureaus placed in 10 major cities around the world. RAB

ABS IBC

JRN JNN TUY TBC Television Radio YBC BSN TUF KNB RFC MRO TUT SBC FBC BSS UTY YBS TBS TBS R&C MBS TYS RSK CBC SBS RCC ABC KRY RNC RKB ITV JRT WBS OBS RNB RKC NBC KUTV RKK

MRT MBC

RBC

JNN Overseas Bureaus

Moscow London (& Middle East) Paris Beijing Seoul Los Angeles New York Tokyo (TBS) Washington, D.C. Shanghai

Bangkok

Tokyo Broadcasting System Holdings, Inc. 24 INVESTOR INFORMATION 2018 Tokyo Broadcasting System Holdings, Inc.

5-3-6 Akasaka, Minato-ku, Tokyo 107-8006, Japan Phone: +81-3-3746-1111 Fax: +81-3-3588-6378 www.tbsholdings.co.jp/ir/en/